Canada is the fifth largest oil and gas producing jurisdiction in the world on a barrel of oil equivalent (boe) basis producing 7.6 million boe/day.
In 2019 this industry will generate production revenues exceeding $115 billion and free cash flow for reinvestment exceeding $50 billion. Maintenance capital expenditures to sustain production will be over $30 billion and production operating costs will gain surpass $40 billion.
Canada’s upstream oil and gas industry remains the country’s largest resource industry by any measure. Sustaining this business at current levels will be the second largest private sector investment in the country, behind only residential housing.
In the absence of takeaway pipeline capacity, the business environment for the oilfield services sector remains contracted from prior years of capital investment for production growth. However, the business opportunity remains significant particularly for innovators introducing products and services that reduce costs and/or the industry’s environmental impact.
Globally, the market for hydrocarbon energy resources remains strong and growth is forecast for the foreseeable future.